Online fashion resale marketplace ThredUp (NASDAQ:TDUP) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
ThredUp met analysts’ revenue expectations last quarter, reporting revenues of $90.77 million, up 16.9% year on year. It was a softer quarter for the company, with EPS in line with analysts’ estimates and revenue guidance for next quarter missing analysts’ expectations. It reported 1.77 million orders, up 20.4% year on year.
Is ThredUp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ThredUp’s revenue to grow 7.2% year on year, slowing from the 33.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ThredUp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ThredUp’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 1.1%, and Levi's reported revenues up 4.3%, in line with consensus estimates. VF Corp traded up 7.6% following the results while Levi's was down 2.4%.
Read our full analysis of VF Corp’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 5.7% on average over the last month. ThredUp’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $7.24 (compared to the current share price of $2.17).
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